Falling Global NDM/SMP Prices Prompt Request
US - The strain of falling global milk prices and bulging worldwide milk production prompted the Polish delegation to request that the European Union’s (EU) Agriculture and Fisheries Council consider reintroducing exports refunds at their monthly committee meeting held today and tomorrow, according to Thursday's Daily Dairy Report.
27 April 2012
2 minute read
In January 2009, the EU
reintroduced export refunds of 200 Euros/
MT, or 12¢ per pound, on SMP which
were discontinued in November 2009 in
response to the strong global dairy product
prices.
Similar to the U.S. dairy product support
prices, the EU has intervention prices. The
EU intervention price for SMP is about
$1.02/lb. Intervention is open from Mar. 1 to
Aug. 31. The EU can suspend intervention
if quantities offered exceed109,000 MT, or
240 million lbs.
The chart (please see full report) illustrates current low
side NDM/SMP prices reported in key
export countries/regions. Unless NDM/SMP
prices stabilize soon, it appears that SMP
will enter EU intervention.
Dry product prices as reported by Dairy
Market News were mostly lower for the
week ending Apr. 27.
The Central dry whey
mostly range is 48.25¢ to 56.5¢, down
0.25¢ on the low end and 1.5¢ lower on the
high end. The West dry whey mostly range
is 46.0¢ to 53.25¢, unchanged on the low
side but down 1.25¢ on the high side. The
Central and West regions are reporting
NDM price lows of $1.10/lb. and $1.05/lb.,
respectively. The Central/East NDM mostly
range is $1.12/lb. to $1.30/lb., down 3.0¢ on
the low end and a penny lower on the high
end. The West NDM mostly range is $1.12/
lb. to $1.24/lb., down 3.0¢ on the low end
and 2.0¢ lower on the high end.
The spread between CME spot Cheddar
block and barrel cheese prices expanded
today. Five loads of blocks traded at
$1.5275/lb. up 0.25¢. The barrel market
traded seven times before closing 2.75¢
lower at $1.4200/lb. The CME spot butter
market closed 3.0¢ lower at $1.36/lb. on an
offer.
CME spot Grade A and Extra Grade
NDM markets also settled lower, each down
a penny, at $1.1575/lb. and $1.1175/lb. on
two offers. Dry whey futures were the sole
dairy commodity to settle higher on the
day after NDPSR reported a higher than
expected dry whey price yesterday.
Further Reading
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